Wall Street set for higher open amid M&A, earnings

By IBT Staff Reporter On 02/22/10 AT 9:08 AM

U.S. stock index futures pointed to a higher open on Monday after Schlumberger agreed to buy Smith International for $11.34 billion in stock and Lowe's Co. posted better-than-expected earnings, indicating increased confidence among corporate managers and consumers.

Schlumberger Ltd agreed to buy Smith International in a $11.34 billion all-stock deal that will boost the oilfield services leader's revenue to double that of its nearest rival. The move was the latest in an M&A arena slowly coming back to life.

The market likes to know that there is value being created out there and things are worth more then what they were, said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co. in San Francisco. What you're looking at is another situation in which we have a market that's saying yes, there's still value in this market.

Lowe's Co , the No. 2 U.S. home improvement store, posted earnings of $0.14 a share, compared to an expected $0.12 for the fourth quarter. The company, seen as indicator for the consumer's willingness to spend, said it expected sales to rise 1 percent to 3 percent in the current quarter.

Last week stocks closed out their best week this year. The benchmark S&P 500 has trimmed its losses since its January 19 peak to 3.6 percent decline through Friday. The index fell as much as 8 percent through February 8.

Healthcare stocks, which have been a wildcard for the market this year, are expected to come in focus today as President Barack Obama pitches his bid to revamp the U.S. healthcare system as a way to control big insurance company rate increases.

Obama will release his healthcare plan on Monday, the White House said.